Although France is less exposed than EU neighbours Italy and Spain, new tariffs announced by US President Donald Trump on Wednesday could severely impact strategic industries including aeronautics, wine and spirits, and luxury goods.
As part of a promise to reindustrialise the US and usher in a new “golden age”, Trump on April 2 unveiled sweeping tariffs on US economic partners in order to “rebalance global trade flows”. Trump’s order hikes current rates to a baseline 10% on all imports to the US, and 20% for products coming from the European Union.
Tariffs are a flagship policy of Trump’s “America first” agenda, which aims to reduce the US trade deficit – which stood at nearly 100 billion dollars at the end of 2024 – and the country’s staggering overall debt, which hit a record $36.1 trillion – equivalent to 100 percent of GDP – in January 2025.
But they may also cause price hikes and supply chain disruption that could have a devastating effect on the global economy.
In total, France exported 4.5 billion euros in luxury goods to the United States in 2024.
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